Partners pin station hopes on stars

John Singleton’s
Macquarie Radio Network
and
Pacific Star Network
have set a modest ratings target for MTR 1377, the Melbourne talk radio station that debuts at 6am on April 19. That is a smart move, given the size of the challenge they face.

Radio station MTR 1377, which will use the frequency now occupied by Pacific Star’s 3MP station, is being aimed directly at
Fairfax Media
’s 3AW and ABC Radio 774, the well-established stations that dominate talk radio in Melbourne. People will try the station, but convincing them to switch permanently will be tough.

Pacific’s 3MP had a 2.2 per cent share of Melbourne radio listeners in the most recent Nielsen ratings survey, which covered the period from January 31 to March 20. Macquarie, which owns the Sydney stations 2GB and 2CH and is managing the joint venture with Pacific Star, is aiming for a 3 per cent share for the new station by midyear.

Media and advertising industry executives like the announcers that Macquarie has recruited for the radio talk station, including former 3AW star Steve Price, who has the key breakfast session on MTR 1377 (breakfast shows largely dictate ratings), former television star and disgraced businessman
Steve Vizard
, TV reporter Martin King, sports commentator Sam Newman and writers from News Ltd’s Herald Sun.

But Macquarie’s decision to run some programs from 2GB, including Chris Smith’s afternoon show and a “best of" Alan Jones program, on MTR 1377 has surprised people, given the failure of previous attempts to “network" shows in Sydney and Melbourne.

Related Quotes

Company Profile

Alan Bond’s networking of programs on 2UE and 3AK in the mid-1980s was a spectacular failure. “Networking radio shows is very risky," Paul Gardner, the Melbourne-based chairman of ad agency Grey Group, says. “It hasn’t worked before. It’s the radio version of using a Mumbai call centre to service Australian customers."

Another challenge for MTR 1377 is its lack of AFL coverage in footy-mad Melbourne. Four radio stations – 3AW, 3MMM, ABC Radio 774 and Pacific Star’s own sports entertainment network 3AK – cover the AFL, leaving no room for MTR 1377 to draw fans.

Macquarie is pitching the new station at people aged over 40, and it has a skew to over-55s – the same target market as 3AW and ABC 774. Mark Pejic, chief operating officer of media agency MediaCom, says that convincing those people to switch stations will be hard.

“Breaking the stranglehold 3AW has in Melbourne will be very difficult, if somewhat insurmountable, in the short term," he says. “Melburnians are loyalists."

People aged under 30 are more likely to change radio stations than people over 30. Pejic points out that 90 per cent of 3AW’s listeners are over 40 and 72 per cent are over 55. About 60 per cent of its listeners are women. “The MTR 1377 line-up promises to be strong, bold and opinionated, which may alienate women," Pejic says.

Last week, Pacific Star chief executive
Barrie Quick
said the new station would provide Melbourne radio listeners “with an alternative offering, a talk radio station that is committed to telling it like it is, regardless of the consequences".

Fusion Strategy managing director Steve Allen says that strategy could create problems. “Melbourne’s appetite for shock jocks is yet to be tested," he says. “Also, how will the Melbourne public take to Vizard’s return to the public spotlight?"

Despite his reservations, Allen thinks MTR 1377 can achieve a 4 per cent audience share by mid-June and 5.5 per cent by late July. “We think it can get to a 7 per cent share eventually," he says. “But 3AW is well-established and will defend its position."